Stock exchange elections deadlocked
Stock exchange elections deadlocked
JAKARTA (JP): At 12:00 a.m. this morning, nine hours after the
scheduled close of their annual shareholders' meeting, members of
the Jakarta Stock Exchange (JSX) had not yet succeeded in
electing president in a contest marred by personal attacks among
the candidates.
The meeting resolved to continue the meeting after midnight as
The Jakarta Post went to press. Presidential candidates were
narrowed down four, from an initial 10, earlier in the evening.
They included three members of the exchange's previous executive
board -- Hasan Zein Machmud, Felia Salim, Achmad Daniri -- and
L.G Rompas of the Inter-Pacific Securities Company.
The meeting also elected two new members to the exchange's
supervisory board -- Rini MS Suwandi, a director of Astra
International and Rustam Effendi, the president of the state-
owned Danareksa Securities. They will fill the posts left vacant
by Sjahrizal, the former president of the state-owned Bank
Pembangunan Indonesia (Bapindo), who is currently serving a jail
term for his role in a 1994 credit fraud scandal, and Tito
Sulistio, now the president of the parallel over-the-counter
exchange.
The JSX, with a market capitalization of over Rp 104 trillion
(US$46.85 billion) and an average daily trading value of over Rp
104 billion. Its top job promises more than mere prestige.
The top position also comes with a basic salary of more than
Rp 25 million ($11,265) a month.
Per capita income in Indonesia is less than US$700 a year.
Most candidates, however, contended that it was not the money
nor the popularity that were the main reasons behind their
eagerness to take part in the tough competition for the
exchange's top management position. The most commonly cited
motivation was a desire to foster the development of the stock
exchange.
Minister of Finance Mar'ie Muhammad approved a list of 60
nominees for the election of the JSX president last week but the
Capital Market Supervisory Agency (Bapepam) shortened it to 10.
The election was marred by personal attacks among the
candidates, who included previous members of the JSX management
Hazan Zein Mahmud, Achmad Daniri, Tubagus Hasjim and Felia Salim.
They were challenged by six newcomers: L.G. Rompas, the
president of Inter-Pacific Securities, Basjiruddin A. Sarida, the
president of the Surabaya Stock Exchange, Rizal Ramli, the
managing director of the Econit consultancy firm, Stanislaus Say,
a senior official of the ministry of finance, Harry Wiguna, an
executive of BT Prima Securities and I Made R Ramia, a senior
executive of Panin Securities.
Outside the meeting, which was participated in by
representatives of 202 securities companies, copies of a three-
page open letter were circulated among the journalists and stock
brokers. The letter attacked the noted economist Sjahrir, stock
analysts and the managing director of the business consultancy
firm ECFIN.
Sjahril was not one of the candidates. The open letter alleged
that he had arranged a secret meeting with the purpose of
undermining the popularity of Hasan Zein and that he had
campaigned in support of Rompas.
In the meeting itself, Hasan Zein came in for harsh criticism
for failing to exercise greater control over the proceedings.
Finally, though, the election was concluded and the shareholders'
meeting approved the exchange's 1994 financial accounts.(hen)